The Futures

as "the ability to manage risk." Trading in futures contracts based on foreign currencies and Treasury bills had begun at the NYFE a year ago and then died down, leaving the pits empty. Now, after the first hour, trading is already exceeding their wildest expectations, according to Frank Jones, a NYFE vice president. Traders are hesitant at first, but after a while they begin screaming and hollering as some of March, '84 is sold at 330. Talk story about visiting the New York Futures Exchange, or NYFE, and speaking with its president, Lewis Horowitz. At the sound of a brass bell, traders began trading in options on futures based on the composite index of the NY Stock Exchange, for the first time in history. For years it has been possible to trade futures on commodities, and futures based on the composite index of the Stock Exchange have been sold for nearly a year in an adjacent pit at NYFE. Now, options on those futures have been added, allowing one to play the stock market as a whole, and at limited risk. The idea of limited risk seems to be integral to the success of the options, and Horowitz describes the eighties' financial situation.